Post Utme Ims U 2019 Accounting Question 6

Practice objective / multiple choice question 6 from the 2019 Post Utme Ims U Accounting examination.

Post Utme Ims U 2019 Accounting Objective / Multiple Choice
Question 6 POST_UTME_IMS_U • 2019 • ACCOUNTING • objective

A company issued 5,000, 10% debentures of ₦100 each at a discount of 5%. The debentures are redeemable at the end of 5 years. Prepare the journal entry to record the issue of debentures.

Answer Options

Correct Answer A. Debit Cash ₦495,000, Credit Debentures ₦500,000
B. Debit Debentures ₦495,000, Credit Cash ₦500,000
C. Debit Cash ₦495,000, Credit Discount on Debentures ₦5,000
D. Debit Discount on Debentures ₦5,000, Credit Cash ₦495,000
Correct Answer
A
Correct Option:
Debit Cash ₦495,000, Credit Debentures ₦500,000

About This Question

This is Post Utme Ims U 2019 Accounting Question 6. It is one of the objective questions from the 2019 Post Utme Ims U Accounting examination.

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